StoneX Financial will pay a $20,000 fine after a CME
Group panel found the firm failed to manage a customer’s natural gas futures trade properly, letting a short position run past the contract’s expiration.
The violation involved the handling of a customer’s
short position that extended beyond the contract’s expiration, raising
questions about the firm’s compliance procedures.
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Expired Contract and Rule Breach
The New York Mercantile Exchange Business Conduct
Committee found that on November 26, 2024—the last trading day for the DEC24 NG
futures—StoneX maintained a short position for a client who could not fulfill
delivery obligations. The clearing member did not ensure the position was
closed before expiration.
“StoneX should have been aware that its customer was
incapable of making delivery, and did not ensure that the customer’s position
was liquidated prior to the expiration of trading,” the exchange mentioned. “The
Panel found that StoneX thereby violated NYMEX Rule 716.”
Settlement and Penalty
StoneX neither admitted nor denied the violation as
part of a settlement offer. In line with the settlement, the NYMEX panel
imposed a $20,000 fine, effective September 19, 2025.
The case highlighted the responsibilities of clearing
members in managing customer positions for physically settled contracts,
particularly near expiration. It also underscored the potential financial and
reputational consequences for firms that fail to monitor clients’ delivery
capabilities.
Early this year, StoneX Group received approval from CME
Group to operate a CME-registered depository at its New York vault. The move
allows StoneX to store and deliver key precious metals—including gold, silver,
platinum, and palladium—under COMEX and NYMEX contracts.
Related: StoneX Boosts Investment Banking and Trading With Benchmark Acquisition
The company said the new offering aims to improve access for
institutional traders, banks, and other market participants seeking regulated
delivery solutions.
StoneX Group also acquired R.J. O’Brien & Associates, a
U.S.-based futures brokerage firm, in a deal valued at approximately $900
million in equity. Under the agreement, R.J. O’Brien’s global operations will
be integrated into StoneX, expanding the firm’s footprint in the futures
market.
This article was written by Jared Kirui at www.financemagnates.com.
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